Lumber, construction material prices could rise due to tariffs

Published On Feb 7, 2025, 8:16 AM

A potential 25% tariff on goods from Canada and Mexico, proposed by President Trump, is expected to significantly increase construction costs in the U.S. Specifically, home builders warn that the prices of essential materials like softwood lumber and gypsum could rise, leading to a forecasted 40% increase in lumber costs. This situation could exacerbate the ongoing housing affordability crisis by reducing housing starts and increasing financial burdens on home buyers. Although the tariffs have been delayed for a month, the uncertainty surrounding these tariffs continues to affect the construction industry.